Tech giant Google reportedly funneled hundreds of millions of dollars to Samsung in a secretive deal to embed its Gemini AI tools into millions of Galaxy devices, according to a bombshell Bloomberg report. The agreement, finalized in late 2024, ensures that Gemini-powered apps like Gemini Assistant and Gemini Nano come pre-installed as default features on Samsung’s One UI platform, marking one of the largest AI partnerships in smartphone history.
The Billion-Dollar AI Play
Citing anonymous insiders, Bloomberg revealed that Google committed to annual payments “in the high hundreds of millions” to Samsung, alongside revenue-sharing incentives tied to user engagement. The deal positions Gemini as the cornerstone of Galaxy AI features, replacing Samsung’s in-house Bixby assistant on newer models and integrating deeply with apps like Notes, Messages, and Camera.
For Google, the move is a strategic counterpunch against rivals like Apple’s Siri, Microsoft’s Copilot, and OpenAI’s ChatGPT, which have dominated AI assistant markets. Meanwhile, Samsung gains both a financial windfall and cutting-edge AI capabilities to bolster its hardware against competitors like Xiaomi and Huawei.
Antitrust Alarm Bells
The partnership has already drawn scrutiny from regulators. European Union antitrust chief Margrethe Vestager hinted at a “close review” of the arrangement, noting concerns over “gatekeeping power in emerging AI markets.” In the U.S., the Federal Trade Commission is reportedly assessing whether the deal stifles competition, echoing past cases like Google’s Play Store dominance.
“This isn’t just about apps—it’s about controlling the AI ecosystem,” said antitrust lawyer Lena Marquez. “When defaults shape user behavior, competitors get squeezed out.”
Mixed Reactions from Users and Analysts
While some Galaxy users praised Gemini’s seamless photo-editing and real-time translation tools, others criticized the bloatware effect. “My phone has apps I didn’t ask for,” complained Reddit user TechGuru92. “Let me choose my AI.”
Analysts, however, see the partnership as inevitable. “Google needs hardware reach; Samsung needs software smarts,” said CCS Insight’s Ben Wood. “But regulators will ask: Does this block smaller AI players from thriving?”
What’s Next for Gemini?
Sources hint at ambitious plans, including a “Gemini Ultra” upgrade for Samsung’s 2026 foldables, enabling advanced on-device AI tasks. Longer-term, Google aims to weave Gemini into Samsung’s entire ecosystem, from TVs to smart refrigerators.
Both companies declined to comment on financial terms. Yet as regulatory clouds gather, the collaboration’s success may hinge on balancing innovation with fair competition—a high-stakes test for the future of AI in our pockets.
For further details, visit the original Bloomberg report.
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